hhgregg Profit Down

hhgregg said Tuesday that it has reported net income of $3.9 million for the most recent quarter, a figure down slightly from the $4.9 million profit recorded for the same period last year.

The company attributed the 20 percent decrease in gross margin rate, as well as the expenses of an increased amount of advertising and hhgregg's recent Washington, DC., launch. Net sales did increase, however, due to the amount of new stores.

"We were very pleased with our continued market share gains in both new and existing markets. Additionally, we have been pleased with our new store productivity which continues to run above 100%," CEO Dennis May said as part of the announcement. "However, we continue to face a challenging macro-economic environment which is negatively impacting our industry and continues to add volatility to our business.

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